12/27/13

Asset Seizure Out-of-Control in Michigan

Piracy in the Great Lakes State – Asset Seizure Out-of-Control in Michigan

Police Departments Run Wild
We’ve all seen those news reports about drug busts in our
neighborhoods where local law enforcement, often working with federal
agencies, boast about the seizure of money, vehicles, guns, knives and
electronics, along with a modest amount of a controlled substance
intended for sale.
From the over-sensationalized reporting, one would think the cash,
computers, cars, and weapons are key elements to an enormous criminal
drug trafficking operation and that’s why they’re being confiscated — as
an urgent matter of public safety.
Not always so though. Increasingly, it’s the cops and prosecutors who are truly breaking bad.
The seized items more accurately fall into the category of trophies,
booty, spoils, loot — to be split among agencies, and they may be used
for most any purpose, not just for fighting the “war on drugs”.
In a recent report, Michigan State Police Annual Asset Forfeiture, we
learn some of the numbers, but not all. Although mandated by law, 56
agencies failed to disclose their takings in 2012. Of those that
complied, a total seizure of $26.5 million in private assets was
reported last year which, after administrative costs, left a tidy $22.4
million to be divvied-up among 286 agencies, most of them small local
police departments, but Detroit area law enforcement hauled in over 1 in
5 dollars taken in the state.
The MSP report explains:

“The primary goal of asset forfeiture is to deter and
punish criminals by taking away the goods, property, and money obtained
through illegal activity.”

Sounds fair enough. But in practice, that reassuring claim stretches credulity in numerous ways.
First, under current law, agencies may seize and liquidate assets
without a conviction, and in some cases, without charges ever being
brought. Michigan is not unique in this legislatively codified abuse of
power, but it is one of the states where the practice has become
rampant. With public sector budgets being slashed under the Snyder
administration, law enforcement agencies have turned to increasingly
creative means of revenue enhancement. Asset seizure loot is rapidly
becoming a growing portion of the budgets of many agencies. Needing a
steady revenue stream, they manage to find funding by any quasi-legal
means – MSP makes no bones about it:

“Due to the unpredictable nature of forfeiture levels and
trends, asset forfeitures will never replace state and local law
enforcement appropriations. However, these funds serve as an important
supplement and adjunct to enhance ongoing enforcement programs.”

The Fix
In an ideal world, to prevent the abuse of authority by these
modern-day privateers, law enforcement budgets would be uncoupled
entirely from asset seizure revenues. That is an unlikely policy
initiative. At the very least then, Michigan must halt arbitrary
forfeitures where no crime has been proven.
On
Jan. 8th, Rep. Jeff Irwin (D-53) will be introducing HB-5213, an
amendment to Public Act 368 of 1978, to require a criminal conviction
before property can be forfeited. Although the proposal is expected to
enjoy broad bipartisan support in the legislature, Irwin told Democracy
Tree he anticipates vigorous challenges from law enforcement agencies
who are dependent on forfeiture revenues.
Irwin explained “Asset forfeiture is a tool they want to use, to have in their arsenal.” He characterized the practice of seizure without a conviction as a “dangerous incentive inherent in the system” and a “violation of the fundamental principle of innocent until proven guilty.”
The lawmaker described increased abuses by law enforcement agencies
in Michigan that are aggressively confiscating equipment and assets of
medical marijuana growers who are acting perfectly within the law. These
individuals are afraid to challenge a seizure because they’re already
feeling overwhelmed by threats of criminal prosecution. Indeed, the MSP
proudly reports that agencies across the state have generously donated
79 plant growing lights and 81 weight scales to public school science
classrooms in 2012. (Note: they didn’t share any of the cash taken.)A Dangerous Incentive
Another serious problem with the current law is the recently expanded
allowable usage of funds obtained through asset forfeiture. The change
incentivizes all departments within an agency to support the unchecked
marauding practice of a few bad actors. Money is used to meet payroll
and overtime demands. It buys vehicles, supplies and equipment.
Everyone, from the janitor to chief of police, including the local
prosecutor, stand to benefit from increased forfeitures.
The American Civil Liberties Union concurs:

“In many jurisdictions,
the money can go to pay for salaries, advanced equipment and other
perks. When salaries and perks are on the line, officers have a strong
incentive to increase the seizures, as evidenced by an increase in the
regularity and size of such seizures in recent years.”

In Michigan, based on reported spending patterns, we can see where
law enforcement priorities truly lie. Among multiple allowable uses of
forfeiture dollars, only 19 agencies bothered to invest their bounty in “crime prevention and outreach” programs, while 46 agencies used it for “informant fees” and 74 spent it on “buy money” for the
undercover purchase of drugs. The bulk of the money went to buy
equipment, primarily newer technology — 170 agencies reported upgrades
to their gadgetry from their loot money.Short-cuts to Bypass the Courts
In 2012, fully 89 percent of Michigan forfeitures were administratively “streamlined”
— meaning they flew under the judicial radar because the asset value
did not exceed the $50,000 threshold which triggers court oversight.
Michigan agencies availed themselves of this provision 9148 times last
year. The MSP report indicated that few of these seizures were
challenged, and further made the outrageous leap in reasoning to state
that this was due to presumed guilt:

“Drug dealers do not contest many of these cases, as they
often do not have a sufficient legitimate source of income to have
legally obtained the property seized.”

Asset forfeiture practices
often go hand-in-hand with racial profiling and disproportionately
impact low-income African-American or Hispanic people who the police
decide look suspicious and for whom the arcane process of trying to get
one’s property back is an expensive challenge. ACLU believes that such
routine “civil asset forfeiture” puts our civil liberties and property
rights under assault, and calls for reform of state and federal civil
asset forfeiture laws.

Yet, the IRS Remains Colorblind
Asset seizure has a certain equal opportunity aspect to it for the
taxman. Fair is fair. Running a business that operates primarily on a
cash-only basis is plenty enough reason to look suspicious to the feds.Michigan is fast becoming the Somalia
of the United States — a place where asset piracy is the norm. Smelling
blood in the water, the IRS, acting under expanded powers found in the
Patriot Act, can now seize bank accounts on a mere whiff of suspicion
that money is being laundered. The Bank Secrecy Act requires financial
institutions to report cash transactions in excess of $10,000, but now
the IRS is looking at lesser amounts claiming the accused is attempting
to skirt the law with multiple smaller deposits. Earlier this month The Detroit News editorialized
on IRS overreach in Michigan. They found that, in one year, the IRS
seized about $500 million in deposits from Michigan residents. Several
cases of bank account forfeiture recently made the news when the court
ordered the return of the money, but the victories were won on a
technicality, and did nothing to strike down the widespread practice of
unwarranted seizure.
While the state may not be able to halt federal abuses, they certainly should get their own house in order.
Michigan lawmakers must reign-in local and state law enforcement —
they certainly don’t seem to be able to control themselves. Irwin
suggested that it’s time for the state to examine new revenue models for
financing our public sector so they aren’t forced to rob those they are
entrusted to protect.
If these abuses were occurring in another country, our media would
report them as an outrageous affront to personal liberty. Not so here in
America, where reporters applaud these seizures under the guise of
successful law enforcement and a false sense of protection for our
communities.Amy Kerr Hardin

Those who would give up Essential Liberty to purchase a little Temporary Safety, deserve neither Liberty nor Safety.Benjamin FranklinOne has not only a legal, but a moral responsibility to obey just laws. Conversely, one has a moral responsibility to disobey unjust laws.Martin Luther King

"America will never be destroyed from the outside. If we falter and lose our freedoms, it will be because we destroyed ourselves."Abraham Lincoln

“If tyranny and oppression come to this land it will be in the guise of fighting a foreign enemy.”James Madison